UPDATE 2-Arcandor could file for insolvency on Monday

* Arcandor sees insolvency if Berlin turns down loan request

* Gov't committee expected to discuss request on Monday

* Arcandor, Metro CEOs agree to enter concrete store talks

* Metro CEO proposes to Berlin four-step merger plan-paper (Adds Arcandor, Metro comments)

By Nikola Rotscheroth

DUESSELDORF, Germany, June 7 (Reuters) - German retailer Arcandor AG (AROG.DE: Quote, Profile, Research) will have to file for insolvency on Monday if the German government turns down its request for state aid, a spokesman for the company said on Sunday.

"If we unexpectedly do not find a solution, which would need to include government support, then we would know on Monday that we would be unable to pay on Friday, and then we would have to file for insolvency on Monday," said spokesman Gerd Koslowski.

A government committee is due to meet on Monday to discuss Arcandor's request for a 437 million euro ($619 million) loan from state development bank KfW [KFW.UL]. [ID:nL563051].

Berlin has pushed Arcandor to consider a deal with rival Metro AG (MEOG.DE: Quote, Profile, Research), which has proposed to merge its department store chain with Arcandor's.